Table of Contents Chapter 1 Introduction 1 Introduce the Vietnam Dairy Products Joint Stock company (Vinamilk) Vinamilk is Vietnams biggest brand of fresh milk, yogurt, ice cream, cheese, and a varie.
1 Table of Contents Chapter 1: Introduction Introduce the Vietnam Dairy Products Joint Stock company (Vinamilk) Vinamilk is Vietnam's biggest brand of fresh milk, yogurt, ice cream, cheese, and a variety of other items Vinamilk was founded in 1976 after the acquisition of three abandoned dairy factories Vinamilk's productivity recovery over the last 45 years has been the key for the success and sacrifices of all members of the company, driven by and wisely led by staff members—people who are inventive, dedicated, and always their best for Vinamilk's common cause Vinamilk has top 50 most valuable brands in Vietnam in 2016, national brand from 2012 and many other rewards Nowaday, Vinamilk is an international nutrition company which operates in over 50 countries Vinamilk has nearly 40 internal and international divisions, including branches, distributors, dairy farms, and other companies Vinamilk produces approximately 18 million items a day Vinamilk places a premium on the quality of its products in order to gain customer confidence The company and dairy farms have total assets of 46074 billion VND, earnings of 14153 billion VND and profit after tax of 2776 billion VND, with 9803 employees in 2019 Vinamilk's organizational structure often divides divisions by functions It assists company in fully exploiting the advantages of specialized industry, according to the functions of each unit It preserves the key functions of power and reputation, promotes instruction, and facilitates the most stringent review possible (Vinamilk, 2020) Figure 1: The Vinamilk organization structure Source: (Vinamilk, 2020) The financial status of Vinamilk is stable at all times In particular, 2019 is a year of change for growth, as the 5-year plan (2017-2021) comes to an end Vinamilk now has a market capitalization of VND 564 trillion, making it the most valuable brand in Vietnam at $2.2 billion It also increased its market share to 0.2%, enabling it to increase its current equity to VND 202907 billion (Vinamilk report, 2020) Chapter 2: Theoritical of Management and Leadership Introduce the Management & Leadership 2.1 Definitions of Management & Leadership a) Management The planning and administration of activities to accomplish a goal is referred to as management Setting the organization's strategy and organizing team actions to achieve these goals through the use of appropriate capital are examples of administration tasks The seniority hierarchy of employees within a company is often referred to as management (Jones and George, n.d.) b) Leadership In industry, leadership is described as a company's management's ability to set and accomplish ambitious targets, take quick and decisive action when necessary, outperform the market, and encourage others to perform at their best (Twin, 2020) 2.2 Approaches to Management • Classical Approach The classical management approach professes a system of management thinking focused on the assumption that workers have only economic and physical needs, and that psychological needs and work fulfillment are either non-existent or unimportant As a result, it encourages high labor specialization, concentrated decision-making and profit maximization (Capuno, 2021) Figure 2: Strenths and Weaknesses of Classical Approach Source: (Muhal, 2015) • Behavioural Approach Behavioural management theory is concerned with identifying worker motivation, including goals, needs and preferences, and group dynamics, in order to manage productivity Because of the emphasis on the human aspect of work, behavioural management theory is often referred to as the human relations revolution (Cliff, 2021) Figure 3: Strengths and Weaknesses of Behavioural Approach Source: (Beccawitt, 2021) • Contingency Approach: The contingency management approach is based on the premise that there is no one-size-fits-all approach to management The term "contingency" refers to the current state of affairs Planning, coordinating, directing, and guiding of effective organisations must be tailored to their specific circumstances In other cases, as part of a full management environment, managers should define the circumstances of a task, the specifications of the management work, and the personnel involved The leaders would then strive to combine all of these components into a solution that is ideally tailored to the problem (Cengage, 2021) Figure 4: Advantages and Disadvantages of Contingency Approach Source: (ErTarunkashni, 2021) • MBO Approach: Management by objectives (MBO) is a strategic management model that seeks to enhance an organization's success by explicitly identifying objectives that both management and staff agree on Having a voice in goal-setting and action planning, according to the theory, promotes staff engagement and involvement, as well as aligning goals around the organisation (Hayes, 2020) Figure 5: Strengths and Weaknesses of MBO Approach (Source:(Hayes, 2020)) 2.3 Leadership Style • Autocratic Style: Autocratic leadership, also known as totalitarian leadership, is marked by individual authority of all decisions and no participation from members of the party Autocratic leaders seldom consider guidance from supporters and make decisions based on their own thoughts and judgments Total, centralized dominance of a party is the hallmark of autocratic leadership (Susman, 2020) Figure 6: Benefits and Drawbacks of Autocratic Style in Leadership (Source: (Susman, 2020)) • Democratic Style: Democratic leadership, also known as participative leadership or shared leadership, is a form of leadership in which party members participate more actively in decision-making This style of leadership can be seen in a number of environments, including private enterprises, colleges, and government (Cherry, 2020) Figure 7: Pros and Cons of Democratic Leadership (Source: (Cherry, 2020)) • Transactional Style: Transactional Leadership focuses on performance, follows an organization's existing process, and calculates progress using the organization's incentive and penalty scheme In an organisation, transactional leaders have formal power and responsibilities This style of leader is in charge of keeping everything on track by overseeing individual success and promoting group performance (Nurs, 2014) Figure 8: Pros and Cons of Transactional Leadership Style Source: (Nurs, 2014) • Transformational Style: Transformational leadership is a management style that encourages, inspires, and motivates people to evolve and drive progress in order to make the business succeed and influence the potential performance (White, 2021) Figure 9: Strengths and Weaknesses of Tranformational Style Source: (Thompson, 2019) 2.4 Comparison between Management and Leadership 2.4.1 The common features • Function: Managers and leaders have the same function as follows: 10 namely "Top 50 Vietnamese Enterprises with attractive employer brands" This helps Vinamilk to attract more talented employees and a loyal source of employees to the organization, thereby helping the company increase productivity and profit.(Chi, 2021) 3.3 Roles and functions of Leaders in Vinamilk Ms Mai Kieu Lien is the General Director of Vinamilk who holds and make it became a highly profitable business today, Ms Lien adopts a democratic leadership style Her leadership style, Ms Lien shared that is: Assertive - Democratic - Compliance Ms Lien, who has been the general director of Vinamilk for over 40 years, is an outstanding example She reveals her business secret: "Below me, there are - Board members appointed by me who are accountable before me Centered on corporate governance rules that meet international norms, we form a unified, sharing, and approved block to jointly enforce the set strategies We are very democratic at work and we debate and listen to each other's views." (Thuy, 2013) "I think leadership is not arbitrary, but instead is assertive, avoiding wavering after making decisions Vinamilk's culture is the willingness to listen to from all employees" she added (Thuy, 2013) Ms Lien also expressed her views on leadership style, noting that the necessary qualities are "sincere, outstanding, and competent, worthy of leading the team to success." Ms Lien noted that the management board often encourages workers to share their thoughts, listen to, appreciate and respond to all employees' questions and complaints by email in a timely manner, and to hold meetings to a minimum (Haymora, 2021) Thanks to Ms Lien's leadership style, Vinamilk becomes the largest dairy company in Vietnam Products from Vinamilk brand are distributed evenly across 63 provinces with 220,000 points of sale Besides, Vinamilk Vietnam is also exported to 43 countries around the world with a wide range of products from children's products to adult products And helping Vinamilk regularly register its name in the prestigious domestic rankings (top 50 listed companies) and abroad such as Asia300 - List of excellent listed companies in Asia; List of 200 best listed companies with revenue over billion USD announced by Forbes Asia; in the world's top 50 largest dairy companies in terms of sales and very close to the top 30 (Vi, 2020) 3.4 Evaluation of the approaches of Vinamilk to leadership and management Positive Management Leadership With Ms Huong's behavioral approach With the democratic and equal leadership of Ms management, she always cares about her Mai Kieu Lien, it has helped Vinamilk become employees and meets the needs of the staff the number dairy company in Vietnam in terms Thanks to that, Vinamilk is highly appreciated of revenue and profit after tax, towards the Top in creating the material and spiritual 30 largest dairy enterprises in the world With conditions to help employees to create, such a leadership, all employees feel respected maximize their capacity, help the company because they always have the right to express increase productivity and profit and many their opinion with everyone in the company This other achievements Currently, Vinamilk is makes employees feel motivated and hard to 13 rated as the best workplace in Vietnam work with Everyone comments together, works announced by Anphabe and the market closely to come up with ideas to develop a Negative research company Intage stronger Vinamilk brand Besides, Ms Huong's management approach Minority viewpoints are always overshadowed makes it difficult to predict the behavior of all Furthermore, many workers believe that the employees and not be able to meet all of corporation upholds democratic rights, so they them That causes a group of employees who work inefficiently, relying on the opinions of are not satisfied with the need for their others In the case of quick decision making, it is behavior to work ineffectively, causing the not appropriate because in the democratic style, performance to deteriorate, affecting the everyone can give their opinion and then make a company In addition, it also makes the labor final decision And it causes time to discuss, discipline is not guaranteed, leading to the affects other activities in the company work efficiency is not high when the employees who violate the regulations are not handled in time 3.5 Recommendation for Vinamilk After introducing leadership, management and analysis of how these two positions operate at Vinamilk, we can provide a number of solutions to improve employee productivity, management and leadership more quality In addition to using behavioral management methods, Ms Huong should use a combination of MBO management methods This helps the company to better grasp the behavior of employees, increase employee cohesion, develop together so that they can fulfill the organizational goals set out and improve high success for organizations On the other hand, besides using democratic leadership method, Ms Lien can use a combination of transactional leadership method Since then, the democracy in the organization is also shown more clearly when employees are encouraged to contribute their opinions, stating their own wishes for the company to increase the working progress of the company At the same time, the leader is also involved in monitoring the work progress and penalties for the employees who violate the company rules This helps the company to understand employees' desires, at the same time to have more product development ideas, ensure fairness among employees and increase productivity from employee contributions, helping the company increase profit, work efficiency is improved To sum up, with the above information, it clarified the leadership and management style and at the same time clarified the two specific positions at Vinamilk dairy group From there, we can see that management and leadership are two indispensable positions in any business, as it is always the part that leads employees to 14 work to achieve productivity and profitability for the company 15 Slide of Management Operations 16 17 18 19 20 21 22 23 24 25 References Beccawitt, 2021 Aggression: Learned or Inherited? 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Behavioral Management Theory [online] Cliffsnotes.com Available at: ... • MBO Approach: Management by objectives (MBO) is a strategic management model that seeks to enhance an organization's success by explicitly identifying objectives that both management and staff